MISS­ING THE BOAT

Finweek English Edition - - INVESTMENT -

ISA Hold­ings has seen very lit­tle share price ac­tion lately as the share price is stuck around 60c. Prof­its have been lack­lus­tre on the back of weak de­mand from the bank­ing sec­tor which it op­er­ates in, of­fer­ing IT se­cu­rity. In many senses it has been a lazy com­pany, pay­ing a strong div­i­dend but not re­ally ex­pand­ing or grow­ing. Surely, the re­cent cau­tion­ary an­nounce­ment is go­ing to change that? The ques­tion is whether it is buy­ing or be­ing bought? If it is the lat­ter (and that would be my guess), then there are many com­pa­nies (listed and un­listed) who would surely love to have this niche IT player added to their ser­vices. If this is in­deed the case, one has to lament the missed op­por­tu­nity for ISA to be much greater if they’d paid fewer div­i­dends and ex­pended op­er­a­tions via ac­qui­si­tions. The EOH and Adapt IT model is not a guar­an­teed suc­cess (and it’s still early days for Adapt IT)

*The writer owns shares in Capitec.

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